LIC Housing jumps 9% after HFC cuts home loan rates to 7.4%

NEW DELHI: Shares of LIC Housing Finance climbed 9 per cent in Thursday's trade after the housing finance company cut rate of interest for individual home loan borrowers with immediate effect.

The rate of interest for new customers having CIBIL score of 800 or more has been cut to 7.5 per cent for any amount of loan, LIC Housing said.

An additional reduction of 10 basis points i.e. 7.40 per cent will be offered if the customer assigns new or existing single premium term assurance policy with the sum assured equal to the loan amount to LIC Housing.

The rate of interest is linked to the creditworthiness as reflected in CIBIL scores of the borrowers, LIC Housing said.

“We want to bring confidence back to the sector and will do our part in supporting the real estate industry and the economy. The present crisis has also forced businesses to adapt to factors like social distancing and prepare for a new normal by leveraging technology," said Siddhartha Mohanty, Managing Director & CEO of LIC Housing Finance.

The shares of the company closed 9.05 per cent higher at Rs286.85 on BSE.